Mortgages: What You Need to Know to Get the Best Deal

Thinking about buying a home or switching your loan? A mortgage is the biggest financial commitment most people make, so it pays to understand the basics before you sign anything. In this guide we break down the key pieces – from the cost of a 30‑year loan to the hidden savings you can unlock by remortgaging.

First off, a mortgage is simply a loan you use to buy property. The lender gives you the cash, you repay it with interest over a set period – usually 15, 20 or 30 years. The interest rate is the driver of your monthly payment, and even a tiny change can shift what you pay by hundreds of pounds each month.

How to Spot a Good Mortgage Rate Today

Right now, 30‑year mortgage rates are hovering around 7 percent, but they can swing up or down based on economic news and the Bank of England’s base rate. When you compare deals, look for the annual percentage rate (APR) because it includes fees and other costs that the headline rate might hide.

Use a simple spreadsheet or an online calculator to see how a £100,000 loan at 7 percent works out. Over 30 years you’ll pay roughly £199,000 in total – that’s almost double the original amount. If you can lock in a rate just a point lower, say 6 percent, you’d save about £22,000 over the life of the loan.

Remember, the “best” rate isn’t always the lowest number. Some lenders offer lower rates but charge high arrangement fees. Add those fees to the APR and you’ll see the real cost.

Remortgaging: When Switching Can Boost Your Finances

Remortgaging means moving your existing mortgage to a new deal, often with a different lender. It’s not just for people who want a lower rate – you can also release equity, consolidate debt, or shorten the term to pay off faster.

One of the biggest benefits is saving money on monthly payments. If you’re paying 7 percent and the market drops to 5 percent, swapping deals could cut your payment by a few hundred pounds. Even after accounting for exit fees, the savings usually add up quickly.

Another advantage is borrowing less. Some homeowners use a remortgage to pay down part of the loan, which reduces the total interest you’ll pay. It also strengthens your credit profile because a lower debt‑to‑income ratio looks better to lenders.

Before you start, check your credit score, gather recent payslips, and have a clear idea of how much you owe. Lenders will look at income, existing debts, and the value of your home. Being prepared speeds up the approval and gives you leverage to negotiate better terms.

Keep an eye on the total cost of switching. Exit fees, valuation charges, and legal costs can eat into your savings if the new rate isn’t significantly better. A good rule of thumb is that you should see at least a £1,000 saving in the first year to make the move worthwhile.

Whether you’re a first‑time buyer or a homeowner with an existing loan, the key is to stay informed. Track changes in mortgage rates, compare APRs, and consider if a remortgage could help you meet your financial goals.

Take action now: pull up a mortgage calculator, plug in your numbers, and see how different rates affect your payment. Then, if the numbers look promising, start gathering the paperwork for a remortgage quote. The sooner you act, the more you can lock in lower rates before they climb again.